Yesterday, the FOMC decided to keep rates unchanged and kept the door open for two more hikes by the year end. As for today, the central bank torch will be passed to the BoE. The Bank is widely anticipated to hike today, so attention will quickly turn to the votes and to any hints with regards to its future plans.
FED KEEPS RATES UNCHANGED; KEEPS THE DOOR OPEN FOR MORE HIKES
The dollar ended the day higher or unchanged against all but one of the other G10 currencies. It gained the most against AUD, while it traded virtually unchanged against GBP, CAD and CHF. The sole winner against the greenback was the yen.
Although the dollar’s reaction to the Fed decision was initially a few pips down, the currency quickly rebounded to erase those losses and to gain more. Yesterday, the FOMC decided to keep interest rates unchanged in the 1.75-2.00 range as was widely anticipated, while it made a small change to the accompanying statement. Officials noted that economic activity has been...
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